INSIGHTS – NEWS

Launch of the Economic Stimulus and Relief Package

Namibia’s newly appointed Minister of Finance, Hon. Iipumbu Shiimi, issued the fist official media statement introducing the Economic Stimulus and Relief Package to mitigate the economic impact of COVID-19. As at 1 April 2020, the total Stimulus and Relief Package amounts to N$8.1 billion, comprising of N$5.9 billion in direct support to businesses, households and cash flow acceleration payments for services rendered to Government and N$2.3 billion off-balance sheet Government liabilities.

Launch of the Economic Stimulus and Relief Package

Namibia’s newly appointed Minister of Finance, Hon. Iipumbu Shiimi, issued the fist official media statement introducing the Economic Stimulus and Relief Package to mitigate the economic impact of COVID-19. As at 1 April 2020, the total Stimulus and Relief Package amounts to N$8.1 billion, comprising of N$5.9 billion in direct support to businesses, households and cash flow acceleration payments for services rendered to Government and N$2.3 billion off-balance sheet Government liabilities.

Specific elements of the Economic Relief and Stimulus Package include the following relief measures to support the cash flow and continued productive economic activities;

Wage subsidy for hardest hit sectors

Accelerated repayment of overdue and undisputed VAT refunds

Accelerated payment of overdue and undisputed invoices for goods and services provided to Government

Non-agricultural Small business loan scheme

Agricultural business loan scheme

Granting of the policy relief to borrowers by DBN and AgriBank

Tax-back loan scheme for non-mining corporates

Relaxation of labour regulations to protect jobs

Furthermore, in support of households who are confronted with reduced income, increased health related spending and other hardships due to the virus outbreak, the following measures are proposed;

An Emergency Income Grant

Tax-back loan scheme for tax registered and tax paying (PAYE) employees and self-employed individual persons who have lost income or part thereof

Water subsidy during lockdowns

In the media release issued by the Ministry of Finance on 1 April, the Minister confirmed that the above-mentioned measures take into consideration the monetary policy and banking sector measures announced by the Bank of Namibia.

They take effect immediately and their implementation will be accelerated in coming days and weeks.